Lifestyle Read Time: 3 min

Keeping Good Records is Good Business

Maintaining good records is important to help meet your tax and legal obligations. The right record keeping system not only helps satisfy these obligations, but it may save you money and time. Here’s what to consider for your record-keeping system.

What Records Do You Need to Keep?

The first step is identifying the records you need to maintain. The obvious examples include leases, contracts, payroll and personnel records and a range of accounting and finance information, such as invoices, receipts, checks, payables, and inventory. Please consult a professional with tax expertise regarding your individual situation.1

How Do You Want to Keep Them?

Record maintenance can take three basic forms:

  • Paper-based—It’s old school, but maintaining records in file folders stored in a metal cabinet may be sufficient, though at the risk of files being damaged or destroyed with no back-up.
  • Computer-based—Maintaining records on computers save space and make records management easier. Consider backing up files and keeping them off-site.
  • Cloud computing—Records are stored and managed on the internet, offering possible savings on software, reducing the risk of lost data and providing access from any location.

What Software Should You Use?

The right software can make life more productive; the wrong software may cost you time and money.

When shopping for software, consider:

  • The size of your organization. Do you want an easy-to-use package, or are you able to hire a dedicated employee to take advantage of a more sophisticated alternative?
  • What sort of training and support is provided? Without the right measure of either, your software may not be productivity tool you envisioned.
  • Is specialized software available? The needs of different professions can vary greatly. Specialized software may have capabilities not available with more generic software.
  • What are its mobile capabilities? If you operate your business from the road, you may want your software to have robust mobile features.

1. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Related Content

What is the Value of Your Business?

What is the Value of Your Business?

Ascertaining the value of your business is important for a variety of reasons.

Caring for Aging Parents

Caring for Aging Parents

As our nation ages, many Americans are turning their attention to caring for aging parents.

Inflation & Your Money

Inflation & Your Money

It's important to understand how inflation is reported and how it can affect investments.

 

Have A Question About This Topic?







Thank you! Oops!

Social Media: #NewestBusinessLiabilityRisk

Social media may be a modern imperative for businesses looking to grow and build their brand, but it also introduces risk.

Red Flags for Tax Auditors

Here are six flags that may make your tax return prime for an IRS audit.

AI Tools Changing Retiree Entrepreneurship

The impact that Artificial Intelligence (AI) tools can have on retirees with a consulting or small business venture.

View all articles

What Is the Dividend Yield?

This calculator helps determine your pre-tax and after-tax dividend yield on a particular stock.

What's My Potential Estate Tax?

This calculator helps estimate your federal estate tax liability.

Saving for Retirement

This calculator can help you estimate how much you may need to save for retirement.

View all calculators

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

An Inside Look at Retirement Living

A number of questions and concerns need to be addressed to help you better prepare for retirement living.

Long-Term-Care Protection Strategies

The chances of needing long-term care, its cost, and strategies for covering that cost.

View all presentations

It May Be Time for a Financial Checkup

It’s never a bad time to speak with your financial professional about changes in your situation.

Questions to Consider When Buying a Vacation Home

Doing your research is key before buying a vacation home.

From Boats to Brokers

From the Dutch East India Company to Wall Street, the stock market has a long and storied history.

View all videos